TDS under 194M or 194IA, Income Tax

[Ethirajan Parthasarathy]

An individual enters into contract with a developer to purchase a apartment costing 2 crore of which 75 lakh is towards land & 1.25 crore superstructure. All along the individual was deducting tax u/s 194IA on total sum of 2 crore @ 1%.

With introduction of section 194M, does the scenario change. Is he liable to deduct tax u/s 194IA or 194M

Posts / Replies

[Ganeshan Kalyani]

Section 194IA is more appropriate as it provides for TDS on immovable property.